A bioeconomic model of open ocean grow-out operations for finfish Book uri icon

abstract

  • We develop a bioeconomic model of an open ocean finfish grow-out operation. The model optimizes stocking and harvesting schedules, and projects financial flows. It allows for comparison of alternate grow-out sites based on physical characteristics (distance from shore, water temperature, water depth, waves, etc.). The model takes into account seasonal variability in the price of fish landings, as well as the effect of water temperature on fish growth rates. We illustrate the use of the model by applying it to hypothetical grow-out operations for cod, haddock, and salmon off the coast of New England. The model's optimization procedure assumes that the grow-out operation is to produce a fixed amount of fish (v sub(h), by weight) each month (or in specified months only). The model determines optimal stocking time and number of fish for each harvest month. It also calculates expected financial flows and summary values such as project NPV and amount of up-front investment required.

publication date

  • June 2001